In case of delay in payment Service Tax

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surinder kumar (Querist)
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11 June 2009 We have parternership firm, I got late in depositing the amount of service tax, but I deposited the amount with interest after due date, and also filed the return well in time, Now Central excise authority says that they will charge penalty @ 200 per day by issuing show cause notice on our firm, kindly resolve my this query with proper reference and background.

Surinder

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 June 2009 For non payment or delayed
payment of service tax, as per section 76, a mandatory penalty not less than Rs.200/- per day during which such failure continues or @2% of such tax per month, whichever is higher, shall be imposed by the adjudicating authority.
SCN is issued in the interest of natural justice to enable such person to understand the charges and defend his case before the adjudicating officer.
If the service provider proves that,in reply to the SCN, there was sufficient cause for such failure penalty will be waived u/s 80 of the Finance Act,1994.

Vijay Chitte

Vijay Chitte (Expert)
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11 June 2009 Waiver of penalty, where the amount of service tax alongwith interest deposidted before issue of SCN.

As per circular - F. No. 137/167/2006-CX-4 dated 03 october 2007 clarify that Section 73(3) "provides conclusion of adjudication proceedings in other cases on payment of servie tax and interest."

It has been also conclude in the matter of M/s. Bhoruka Aluminium Ltd. v/s. The commissioner of central excise.

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